The Standard Register Company (SR, Financial) filed Quarterly Report for the period ended 2009-03-29.
The Standard Register Company's primary business has been the design manufacture and sale of business forms. To meet the needs of today's business environment the business form has evolved to incorporate a wide range of sophisticated features and related services that facilitate the recording storage and communication of business transactions and information. The Standard Register Company has a market cap of $150.2 million; its shares were traded at around $5.22 with a P/E ratio of 16.9 and P/S ratio of 0.2. The dividend yield of The Standard Register Company stocks is 17.6%. The Standard Register Company had an annual average earning growth of 3.6% over the past 5 years.
As shown in the table below, SG&A expense decreased by $7.7 million in the first quarter 2009 as compared to 2008. Selling and sales support decreased $4.0 million and general and administrative expenses decreased $2.9 million, primarily reflecting lower salaries and commissions as a result of our workforce reduction and other cost reduction initiatives taken late in 2008 and early 2009. Additionally, pension amortization decreased $0.5 million resulting from our 2008 plan modifications that lowered the amount of our unamortized actuarial losses to be recognized in 2009 and future years.
As part of recording the settlement, we remeasured our pension obligations and plan assets under these plans as of March 1, 2009, the settlement date. The remeasurement resulted in an actuarial gain of $52.8 due to a change in the discount rate used to measure the benefit obligations from 5.75% at December 28, 2008 to 7.0% at March 1, 2009. The change in discount rate is primarily the result of increases in long-term interest rates during the period. Additionally, we updated the fair value of our plan assets and recognized a net actuarial loss of $28.1 due to the actual rate of investment return on our qualified plan being less than the expected rate of return. As a result, we realized a net actuarial gain of $24.7 million which will be amortized into income in future years. This gain reduced our pension liabilities by $24.7, decreased our deferred tax assets by $9.8 million, and reduced accumulated comprehensive losses by $14.9 million.
Also during 2008, we began implementing a plan to redesign our client support infrastructure to more of a centralized model. We have been transitioning customer transactional and administrative functions from our field sales offices to one of three client support centers. The overall benefit of the change is an optimized client support model along with significant annualized cost savings. We expect to complete these actions by the end of June 2009. This action should generate approximately $5.6 million annually in compensation and related cost savings that will be reflected in selling, general, and administrative expenses. However, we expect to re-invest a portion of the savings into our client satisfaction operations. We expect to have involuntary termination costs of $1.5 million and contract termination costs of $0.2 million.
Operating income was $1.4 million, compared to $2.3 million in 2008. The decline of $0.9 million is a result of reduced gross margin of $4.8 million offset by SG&A savings of approximately $3.9 million. The SG&A savings were realized primarily in compensation costs as part of our workforce reduction and other cost reduction initiatives completed in late 2008 and early 2009.
Operating income was down $0.9 million for the first quarter of 2009 compared to 2008, reflecting the lower gross margin of $3.1 million, offset primarily by reduced selling and administrative expenses of approximately $2.2 that resulted from cost reduction actions taken in 2008 and 2009.
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The Standard Register Company's primary business has been the design manufacture and sale of business forms. To meet the needs of today's business environment the business form has evolved to incorporate a wide range of sophisticated features and related services that facilitate the recording storage and communication of business transactions and information. The Standard Register Company has a market cap of $150.2 million; its shares were traded at around $5.22 with a P/E ratio of 16.9 and P/S ratio of 0.2. The dividend yield of The Standard Register Company stocks is 17.6%. The Standard Register Company had an annual average earning growth of 3.6% over the past 5 years.
Highlight of Business Operations:
Net loss was $11.0 million, or ($0.38) per share compared to net income of $2.5 million, or $0.09 per share in 2008. On a per share basis, the pension settlements represented a loss of $0.41 per share.As shown in the table below, SG&A expense decreased by $7.7 million in the first quarter 2009 as compared to 2008. Selling and sales support decreased $4.0 million and general and administrative expenses decreased $2.9 million, primarily reflecting lower salaries and commissions as a result of our workforce reduction and other cost reduction initiatives taken late in 2008 and early 2009. Additionally, pension amortization decreased $0.5 million resulting from our 2008 plan modifications that lowered the amount of our unamortized actuarial losses to be recognized in 2009 and future years.
As part of recording the settlement, we remeasured our pension obligations and plan assets under these plans as of March 1, 2009, the settlement date. The remeasurement resulted in an actuarial gain of $52.8 due to a change in the discount rate used to measure the benefit obligations from 5.75% at December 28, 2008 to 7.0% at March 1, 2009. The change in discount rate is primarily the result of increases in long-term interest rates during the period. Additionally, we updated the fair value of our plan assets and recognized a net actuarial loss of $28.1 due to the actual rate of investment return on our qualified plan being less than the expected rate of return. As a result, we realized a net actuarial gain of $24.7 million which will be amortized into income in future years. This gain reduced our pension liabilities by $24.7, decreased our deferred tax assets by $9.8 million, and reduced accumulated comprehensive losses by $14.9 million.
Also during 2008, we began implementing a plan to redesign our client support infrastructure to more of a centralized model. We have been transitioning customer transactional and administrative functions from our field sales offices to one of three client support centers. The overall benefit of the change is an optimized client support model along with significant annualized cost savings. We expect to complete these actions by the end of June 2009. This action should generate approximately $5.6 million annually in compensation and related cost savings that will be reflected in selling, general, and administrative expenses. However, we expect to re-invest a portion of the savings into our client satisfaction operations. We expect to have involuntary termination costs of $1.5 million and contract termination costs of $0.2 million.
Operating income was $1.4 million, compared to $2.3 million in 2008. The decline of $0.9 million is a result of reduced gross margin of $4.8 million offset by SG&A savings of approximately $3.9 million. The SG&A savings were realized primarily in compensation costs as part of our workforce reduction and other cost reduction initiatives completed in late 2008 and early 2009.
Operating income was down $0.9 million for the first quarter of 2009 compared to 2008, reflecting the lower gross margin of $3.1 million, offset primarily by reduced selling and administrative expenses of approximately $2.2 that resulted from cost reduction actions taken in 2008 and 2009.
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